Question 1

How It Works

Accepted Answer

Enter the vehicle price, down payment, loan term, and interest rate to see your monthly payment, total interest cost, and full loan amount. The calculator helps you compare different loan terms and down payment scenarios so you can find the right balance between affordable monthly payments and total cost.

Question 2

What auto loan term should I choose — 48, 60, or 72 months?

Accepted Answer

Shorter terms (48-60 months) have higher monthly payments but save significantly on interest and keep you from going 'underwater' on the loan. A 72+ month loan lowers monthly payments but costs much more overall and you may owe more than the car is worth for years. Financial experts recommend 60 months or less.

Question 3

How much should I put down on a car?

Accepted Answer

Aim for at least 20% down on a new car and 10% on a used car. A larger down payment reduces your loan amount, monthly payment, and total interest. It also protects you from negative equity since cars depreciate 20-30% in the first year. If you can't afford 20% down, consider a less expensive vehicle.

Question 4

Is it better to finance through a dealer or my bank?

Accepted Answer

Get pre-approved by your bank or credit union before visiting the dealer — this gives you a baseline rate to compare. Dealers sometimes offer competitive rates (especially manufacturer-subsidized 0% APR promotions), but they may also mark up rates for profit. Having pre-approval gives you negotiating leverage.

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Matthew Collins